| Bermuda                                                                      | 98-0225954                             |
|------------------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization)      | (IRS      Employer Identification No.) |
| Commerce      Building,Chancery      Lane,Hamilton      HM 12, Bermuda  |
| (Address      of principal executive offices)                                |
|                                                                         |
| (441)      295-9230                                                          |
|                                                                         |
| (Registrant's      telephone number, including areacode)                     |

|   N/A                                                                              |
|----------------------------------------------------------------------------------------------|
| (Former      name, former address and former fiscal year, if changed since last      report) |

| Indicate      by check mark whether the registrant (1) has filed all reports      required to be filed by Section 13 or 15(d) of the Securities      Exchange Act of 1934 during the preceding 12 months (or for such shorter      period that the registrant was required to file such reports), and      (2) has been subject to such filing requirements for the past 90      days.                                                                             Yes x  No  ̈ |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company. See the definitions of “large accelerated filer," "accelerated      filer” and "smaller reporting company" in Rule 12b-2 of the Exchange      Act. Large      Accelerated Filer  ̈  Accelerated      Filer x       Non-accelerated Filer  ̈  Smaller      Reporting Company  ̈                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Indicate      by check mark whether the registrant is a shell company (as defined by      Rule 12b-2 of the      Act).                             Yes  ̈  No x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

| As      of August 5, 2008, the registrant had outstanding 17,514,496 Class A      common shares, par value $0.01 per share, and 12,390,461 Class B common      shares, par value $0.01 per share. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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TBS INTERNATIONAL LIMITED

Table of Contents

|                     |                                                                                             |   |                                                                                                                                   |   |   |
|--------------------------|--------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                     |                                                                                             |   |                                                                                                                                   |   | Page   |
|                     |                                                                                             |   | PART      I:  FINANCIAL INFORMATION                                                                                          |   |   |
|                     |                                                                                             |   |                                                                                                                                   |
| Item      1              | Financial Statements                                                                             |   |                                                                                                                                   |
|                     |                                                                                             |   | Consolidated Balance Sheets as of June 30, 2008      (Unaudited) and December 31, 2007 and                                             |   | 3      |
|                     |                                                                                             |   | Consolidated Statements of Income (Unaudited) for      the three and six months ended June  30, 2008 and June 30,      2007  |   | 4      |
|                     |                                                                                             |   | Consolidated Statements of Cash Flows (Unaudited) for      the six months ended June 30, 2008 and June 30, 2007                        |   | 5      |
|                     |                                                                                             |   | Consolidated Statement of Changes in      Shareholders' Equity (Unaudited) for the six  months ended      June 30, 2008 |   | 6      |
|                     |                                                                                             |   | Notes to Consolidated Financial      Statements                                                                                        |   | 7      |
|                     |                                                                                             |   |                                                                                                                                   |   |   |
| Item 2              | Management’s Discussion and Analysis of Financial      Condition and Results of Operations |   | 21                                                                                                                                     |
| Item 3              | Quantitative and Qualitative Disclosure About      Market Risk                                   |   | 41                                                                                                                                     |
| Item 4              | Controls and Procedures                                                                          |   | 42                                                                                                                                     |
|                     |                                                                                             |   |                                                                                                                                   |   |   |
|                     |                                                                                             |   | PART      II:  OTHER INFORMATION                                                                                             |   |   |
| Item      1              | Legal Proceedings                                                                                |   | 42                                                                                                                                     |
|   Item 1A | Risk Factors                                                                                     |   | 42                                                                                                                                     |
| Item 2              | Unregistered Sales of Equity Securities and Use      of Proceeds                                 |   | 42                                                                                                                                     |
| Item 3              | Defaults Upon Senior Securities                                                                  |   | 42                                                                                                                                     |
| Item 4              | Submission of Matters to a Vote of Security      Holders                                         |   | 43                                                                                                                                     |
| Item 5              | Other Information                                                                                |   | 43                                                                                                                                     |
| Item 6              | Exhibits                                                                                         |   | 44                                                                                                                                     |
|                     | Signatures                                                                                       |   |                                                                                                                                   |

----

Item 1.    FinancialStatements

CONSOLIDATED BALANCE SHEETS

|                                           |                                         |                                                           |                                                                                                                                               |    | June      30, |    |   | December      31, |    |
|-------------------------------------------|----------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------|---------|--------|-------------------|---------|
|                                      |                                         |                                                           |                                                                                                                                               |    | 2008          |    |   | 2007              |    |
|                                      |                                         |                                                           |                                                                                                                                               |    | (unaudited)   |    |   |              |    |
| Assets                                    |                                         |                                                           |                                                                                                                                               |    |          |    |
|                                      | Current      assets                          |                                                           |                                                                                                                                               |    |          |    |   |
|                                      |                                         | Cash      and cash equivalents                                 |                                                                                                                                               | $       | 127,042       |    |   | $                 | 30,498  |   |
|                                      |                                         | Charter      hire receivable, net of allowance of $500 in 2008 |                                                                                                                                               |    |          |    |   |              |    |   |
|                                      |                                         |                                                           |  and      $443 in 2007                                                                                                                        |    |          | 50,960  |   |              |    | 30,081 |   |
|                                      |                                         | Fuel      and other inventories                                |                                                                                                                                               |    | 18,708        |    |   |              | 11,123  |   |
|                                      |                                         | Prepaid      expenses and other current assets                 |                                                                                                                                               |    | 5,909         |    |   |              | 7,742   |   |
|                                      |                                         | Advances      to affiliates                                    |                                                                                                                                               |    | 5,507         |    |   |              | 918     |   |
|                                      |                                         |                                                           | Total      current assets                                                                                                                          |    |          | 208,126 |   |              |    | 80,362 |   |
|                                      | Deposit      for vessel purchase             |                                                           |                                                                                                                                               | 7,925   |          |    |   | 14,836            |    |
|                                      | Fixed      assets, net                       |                                                           |                                                                                                                                               | 696,113 |          |    |   | 444,082           |    |
|                                      | Goodwill                                     |                                                           |                                                                                                                                               | 8,426   |          |    |   | 8,426             |    |
|                                      | Other      assets and deferred charges       |                                                           |                                                                                                                                               | 15,541  |          |    |   | 11,407            |    |
|                                      |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |    |   |   |
|                                      |                                         |                                                           | Total      assets                                                                                                                                  |    | $             | 936,131 |   |              | $       | 559,113 |   |
|                                      |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |    |   |   |
| Liabilities      and Shareholders' Equity |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |
|                                      | Current      liabilities                     |                                                           |                                                                                                                                               |    |          |    |   |              |    |
|                                      |                                         | Debt,      current portion                                     |                                                                                                                                               | $       | 83,318        |    |   | $                 | 22,699  |   |
|                                      |                                         | Accounts      payable                                          |                                                                                                                                               |    | 14,318        |    |   |              | 11,723  |   |
|                                      |                                         | Accrued      expenses                                          |                                                                                                                                               |    | 38,550        |    |   |              | 36,713  |   |
|                                      |                                         | Voyages      in progress                                       |                                                                                                                                               |    | 11,242        |    |   |              | 7,016   |   |
|                                      |                                         | Advances      from affiliates                                  |                                                                                                                                               |    | 797           |    |   |              | 467     |   |
|                                      |                                         |                                                           | Total      current liabilities                                                                                                                     |    |          | 148,225 |   |              |    | 78,618 |   |
|                                      |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |    |   |   |
|                                      | Debt,      long-term portion                 |                                                           |                                                                                                                                               | 268,040 |          |    |   | 157,467           |    |
|                                      | Other      liabilities                       |                                                           |                                                                                                                                               | 3,566   |          |    |   | 3,465             |    |
|                                      |                                         |                                                           | Total      liabilities                                                                                                                             |    |          | 419,831 |   |              |    | 239,550 |   |
|                                      |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |    |   |   |
|                                      | COMMITMENTS      AND CONTINGENCIES (Note 12) |                                                           |                                                                                                                                               |    |          |    |   |              |    |
|                                      |                                         |                                                           |                                                                                                                                               |    |          |    |   |              |    |   |   |
|                                      | Shareholders'      equity                    |                                                           |                                                                                                                                               |    |          |    |   |              |    |
|                                      |                                         | Common      shares, Class A, $.01 par value, 75,000,000        |                                                                                                                                               |    |          |    |   |              |    |   |
|                                      |                                         |                                                           | authorized,      17,514,496 shares issued and 17,504,496 shares outstanding in 2008 and      14,350,996      shares issued and outstanding in 2007 |    |          | 175     |   |              |    | 143 |   |
|                                      |                                         | Common      shares, Class B, $.01 par value, 30,000,000        |                                                                                                                                               |    |          |    |   |              |    |   |
|                                      |                                         |                                                           | authorized,      12,390,461 shares issued and outstanding in 2008 and 13,404,461 shares      issued and outstanding in 2007                        |    |          | 124     |   |              |    | 134 |   |
|                                      |                                         | Warrants                                                       |                                                                                                                                               |    | 21            |    |   |              | 21      |   |
|                                      |                                         | Additional      paid-in capital                                |                                                                                                                                               |    | 185,586       |    |   |              | 88,530  |   |
|                                      |                                         | Accumulated      other comprehensive (loss)                    |                                                                                                                                               |    | (868          | )       |   |              | (2,897  | ) |
|                                      |                                         | Retained      earnings                                         |                                                                                                                                               |    | 331,651       |    |   |              | 233,632 |   |
|                                      |                                         | Less:      Treasury stock (10,000 shares)                      |                                                                                                                                               |    | (389          | )       |   |              |    |   |
|                                      |                                         |                                                           | Total      shareholders' equity                                                                                                                    |    |          | 516,300 |   |              |    | 319,563 |   |
|                                      |                                         |                                                           | Total      liabilities and shareholders' equity                                                                                                    |    | $             | 936,131 |   |              | $       | 559,113 |   |
|                                      |                                         |                                                           |                                                                                                                                               |

Table of Contents

----

CONSOLIDATED STATEMENTS OF INCOME

|                                                 |                                               |                                        |   | Three      Months Ended June 30, |       |   | Six      Months Ended June 30, |   |
|-------------------------------------------------|----------------------------------------------------|---------------------------------------------|--------|----------------------------------|------------|--------|--------------------------------|--------|
|                                            |                                               |                                        |   | 2008                             |       |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
|                                            |                                               |                                        |   | (unaudited)                      |       |   | (unaudited)                    |   |   | (unaudited) |   |   | (unaudited) |   |
| Revenue                                         |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |
|                                            | Voyage      revenue                                |                                        | $      | 128,696                          |       |   | $                              | 60,384 |   |   | $ | 226,856 |   |   | $ | 112,323 |   |
|                                            | Time      charter revenue                          |                                        |   | 25,258                           |       |   |                           | 16,122 |   |   |   | 57,984 |   |   |   | 34,190 |   |
|                                            | Other      revenue                                 |                                        |   | 2,993                            |       |   |                           | 155    |   |   |   | 3,683 |   |   |   | 474 |   |
|                                            |                                               | Total      revenue                          |   |                             | 156,947    |   |                           |   | 76,661 |   |   |   | 288,523 |   |   |   | 146,987 |   |
| Operating      expenses                         |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |
|                                            | Voyage                                             |                                        |   | 44,122                           |       |   |                           | 19,534 |   |   |   | 76,540 |   |   |   | 38,715 |   |
|                                            | Vessel                                             |                                        |   | 24,315                           |       |   |                           | 22,941 |   |   |   | 47,749 |   |   |   | 40,498 |   |
|                                            | Depreciation      and amortization of vessels      |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |
|                                            |                                               | and      other fixed assets                 |   |                             | 16,515     |   |                           |   | 8,423 |   |   |   | 30,008 |   |   |   | 16,837 |   |
|                                            | General      and administrative                    |                                        |   | 15,296                           |       |   |                           | 7,663  |   |   |   | 27,063 |   |   |   | 14,843 |   |
|                                            | Loss      from sale of vessel                      |                                        |   |                             |       |   |                           | 35     |   |   |   |   |   |   |   | 814 |   |
|                                            |                                               | Total      operating expenses               |   |                             | 100,248    |   |                           |   | 58,596 |   |   |   | 181,360 |   |   |   | 111,707 |   |
| Income      from operations                     |                                               |                                        | 56,699 |                             |       |   | 18,065                         |   |   |   | 107,163 |   |   |   | 35,280 |   |
| Other      (expenses) and income                |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |
|                                            | Interest      expense                              |                                        |   | (3,840                           | )          |   |                           | (2,397 | ) |   |   | (7,277 | ) |   |   | (5,169 | ) |
|                                            | Loss      on extinguishment of debt                |                                        |   |                             |       |   |                           |   |   |   |   | (2,318 | ) |   |   |   |   |
|                                            | Gain      on sale and insurance recovery of vessel |                                        |   |                             |       |   |                           | 6,034  |   |   |   |   |   |   |   | 6,034 |   |
|                                            | Interest      and other income (expense)           |                                        |   | (218                             | )          |   |                           | (15    | ) |   |   | 451 |   |   |   | (54 | ) |
|                                            |                                               | Total      other (expenses) and income, net |   |                             | (4,058     | )      |                           |   | 3,622 |   |   |   | (9,144 | ) |   |   | 811 |   |
|                                            |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                 |                                               | $                                           | 52,641 |                             |       | $      | 21,687                         |   |   | $ | 98,019 |   |   | $ | 36,091 |   |
|                                            |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                            |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share                         |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |
| Net      income per common share                |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |
|                                            | Basic                                              |                                        | $      | 1.83                             |       |   | $                              | 0.77   |   |   | $ | 3.45 |   |   | $ | 1.29 |   |
|                                            | Diluted                                            |                                        | $      | 1.82                             |       |   | $                              | 0.77   |   |   | $ | 3.44 |   |   | $ | 1.29 |   |
| Weighted      average common shares outstanding |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |
|                                            | Basic                                              |                                        |   |                             | 28,778,769 |   |                           |   | 28,014,925 |   |   |   | 28,411,539 |   |   |   | 28,014,122 |   |
|                                            | Diluted                                            |                                        |   |                             | 28,873,395 |   |                           |   | 28,064,954 |   |   |   | 28,476,436 |   |   |   | 28,048,295 |   |
|                                            |                                               |                                        |   |                             |       |   |                           |   |   |   |   |   |   |   |   |   |

Table of Contents

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                           |                                                                 |                                                        |                                                           |     | Six      Months Ended June 30, |    |
|-----------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------------------------|----------|--------------------------------|---------|
|                                                      |                                                                 |                                                        |                                                           |     | 2008                           |    |   | 2007 |   |
|                                                      |                                                                 |                                                        |                                                           |     | (unaudited)                    |    |   | (unaudited) |   |
| Cash      flows from operating activities                 |                                                                 |                                                        |                                                           |     |                           |    |
|                                                      | Net  income                                                |                                                        | $                                                              | 98,019   |                           |    | $ | 36,091 |   |
|                                                      | Adjustments      to reconcile net income to net cash                 |                                                        |                                                           |     |                           |    |   |   |   |
|                                                      |                                                                 | provided      by operating activities                       |                                                           |     |                           |    |   |   |   |   |
|                                                      |                                                                 | Gain      on sale and insurance recovery of vessel          |                                                           |     |                           |    |   |   | (6,034 | ) |
|                                                      |                                                                 | Loss      on sale of vessel                                 |                                                           |     |                           |    |   |   | 814 |   |
|                                                      |                                                                 | Depreciation      and amortization                          |                                                           |     | 30,008                         |    |   |   | 16,837 |   |
|                                                      |                                                                 | Loss      on change in value of interest swap contract      |                                                           |     | 81                             |    |   |   | 155 |   |
|                                                      |                                                                 | Amortization      and write-off of deferred financing costs |                                                           |     | 2,851                          |    |   |   | 452 |   |
|                                                      |                                                                 | Non      cash stock based compensation                      |                                                           |     | 1,429                          |    |   |   | 175 |   |
|                                                      |                                                                 | (Income)      loss in joint venture                         |                                                           |     | (226                           | )       |   |   | 312 |   |
|                                                      |                                                                 | Changes      in operating assets and liabilities            |                                                           |     |                           |    |   |   |   |   |
|                                                      |                                                                 |                                                        | (Increase)      decrease in charter hire receivable            |     |                           | (20,879 | ) |   |   | 5,278 |   |
|                                                      |                                                                 |                                                        | (Increase)      in fuel and other inventories                  |     |                           | (7,585  | ) |   |   | (1,355 | ) |
|                                                      |                                                                 |                                                        | Decrease      in prepaid expenses and other current assets     |     |                           | 1,833   |   |   |   | 3,127 |   |
|                                                      |                                                                 |                                                        | (Increase)      in other assets and deferred charges           |     |                           | (979    | ) |   |   | (569 | ) |
|                                                      |                                                                 |                                                        | Increase      in accounts payable                              |     |                           | 2,595   |   |   |   | 306 |   |
|                                                      |                                                                 |                                                        | Increase      (decrease) in accrued expenses                   |     |                           | 1,448   |   |   |   | (5,231 | ) |
|                                                      |                                                                 |                                                        | Increase  in      voyages in progress                |     |                           | 4,226   |   |   |   | 201 |   |
|                                                      |                                                                 |                                                        | (Decrease)  in      advances from/to affiliates, net |     |                           | (4,260  | ) |   |   | (277 | ) |
| Net      cash provided by operating activities            |                                                                 |                                                        | 108,561                                                        |     |                           |    | 50,282 |   |
| Cash      flows from investing activities                 |                                                                 |                                                        |                                                           |     |                           |    |   |   |
|                                                      | Proceeds      on sale of vessels                                     |                                                        |                                                           |     |                           |    |   | 61,819 |   |
|                                                      | Vessel      acquisitions / capital improvement costs                 |                                                        |                                                           | (267,203 | )                              |    |   | (79,709 | ) |
|                                                      | Deposit      for vessel purchases                                    |                                                        |                                                           | (7,925   | )                              |    |   | (2,900 | ) |
|                                                      | Return      of investment in security                                |                                                        |                                                           |     |                           |    |   | 160 |   |
|                                                      | Repayment      (loans) made to joint venture                         |                                                        |                                                           | 760      |                           |    |   | (200 | ) |
| Net      cash (used) by investing activities              |                                                                 |                                                        | (274,368                                                       | )        |                           |    | (20,830 | ) |
| Cash      flows from financing activities                 |                                                                 |                                                        |                                                           |     |                           |    |   |   |
|                                                      | Proceeds      from issuance of shares in secondary public offering , |                                                        |                                                           |     |                           |    |   |   |   |
|                   |                                                                 | net      of offering costs                                  |                                                           |     | 95,649                         |    |   |   |   |   |
|                                                      | Repayment      of debt principal                                     |                                                        |                                                           | (141,807 | )                              |    |   | (96,039 | ) |
|                                                      | Proceeds      from debt                                              |                                                        |                                                           | 313,000  |                           |    |   | 71,000 |   |
|                                                      | Payment      of deferred financing costs                             |                                                        |                                                           | (4,491   | )                              |    |   | (3,860 | ) |
|                                                      | Reduction      of obligations under capital leases                   |                                                        |                                                           |     |                           |    |   | (1,984 | ) |
| Net      cash provided by (used in) financing activities  |                                                                 |                                                        | 262,351                                                        |     |                           |    | (30,883 | ) |
|                                                      |                                                                 |                                                        |                                                           |     |                           |    |   |   |   |
| Net      increase (decrease) in cash and cash equivalents |                                                                 |                                                        | 96,544                                                         |     |                           |    | (1,431 | ) |
| Cash      and cash equivalents beginning of period        |                                                                 |                                                        | 30,498                                                         |     |                           |    | 12,007 |   |
|                                                      | Cash      and cash equivalents end of period                         |                                                        |                                                           | 127,042  |                           |    | $ | 10,576 |   |
| Supplemental      cash flow information:                  |                                                                 |                                                        |                                                           |     |                           |    |   |   |
|                                                      | Interest      paid, net of amounts capitalized                       |                                                        | $                                                              | 5,275    |                           |    | $ | 4,563 |   |
|                                                      |                                                                 |                                                        |                                                           |     |                           |    |   |   |   |

| Noncash      Investing activities:                                                                                                                                                                                                                                                    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| For      the six months ended June 30, 2007, the proceeds on the sale-leaseback of      the vessels Laguna      Belle and Seminole Maiden      excludes the noncash portion of $5.5 million, which was retained by      the buyer/lessor as a deposit on the bareboat  charters. |

Table of Contents

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'EQUITY

|                                                |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   | Accumulated     |   |    |   |
|------------------------------------------------|-------------------------------|--------------------|--------|----------------------|--------|----------|--------|---------|--------|----------|--------|--------|---------|------------|--------|----------|--------|-----------------|--------|---------|--------|
|                                           |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   | Other      Com- |   |    |   |
|                                           |                          |               |   |                 |   |     |   |    |   |     |   |   |    | Additional |   |     |   | prehensive      |   |    |   |
|                                           |                          | Common      Shares |   | Treasury      Stocks |   | Warrants |   | Paid-in |   | Retained |   | Income |    |       |   |
|                                           |                          | Shares             |   | Amount               |   | Shares   |   | Amount  |   | Shares   |   | Amount |    | Capital    |   | Earnings |   | (Loss)          |   | Total   |   |
|                                           |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   |
|  Balance      at December 31, 2007        |                          | 27,755,457         |   | $                    | 277    |     |   |    | $      |     |   |   | 288,853 |       | $      | 21       |   | $               | 88,530 |    | $      | 233,632 |   | $ | (2,897 | ) | $ | 319,563 |   |
|  Net      income                          |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   | 98,019 |   |   |   |   |   | 98,019 |   |
|  Unrealized      gain on cash flow hedges |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   |   |   |   | 2,029 |   |   | 2,029 |   |
|  Comprehensive      income                |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   |   |   |   |   |   |   | 100,048 |   |
|  Stock      based compensation            |                          | 149,500            |   |                 | 2      |     |   |    |   |     |   |   |    |       |   |     |   |            | 1,427  |    |   |   |   |   |   |   |   | 1,429 |   |
|  Secondary      public offering, net      |                          | 2,000,000          |   |                 | 20     |     |   |    |   |     |   |   |    |       |   |     |   |            | 95,629 |    |   |   |   |   |   |   |   | 95,649 |   |
|  Increase      in Warrants due to         |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   |   |   |   |   |   |   |   |   |
|                                           | anti-dilutive      provisions |               |   |                 |   |     |   |    |   |     |   |   |    | 23,050     |   |     |   |            |   |    |   |   |   |   |   |   |   |   |   |   |
|  Reacquired      stock                    |                          |               |   |                 |   |     |   | 10,000  |   |     | (389   | )      |    |       |   |     |   |            |   |    |   |   |   |   |   |   |   |   | (389 | ) |
|  Balance      at June 30, 2008            |                          | 29,904,957         |   | $                    | 299    |     |   | 10,000  |   | $        | (389   | )      |    | 311,903    |   | $        | 21     |            | $      | 185,586 |   | $ | 331,651 |   | $ | (868 | ) | $ | 516,300 |   |
|                                           |                          |               |   |                 |   |     |   |    |   |     |   |   |    |       |   |     |   |            |   |    |   |   |   |   |   |   |   |   |   |   |   |

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Note 1 — Basis of Presentation

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|                 |   | June      30, |   |   | December      31, |   |
|----------------------|--------|---------------|--------|--------|-------------------|--------|
| Description          |   | 2008          |   |   | 2007              |   |
|                 |   |          |   |   |              |   |
| Fuel                 |   | $             | 14,375 |   |              | $      | 7,703 |   |
| Lubricating      oil |   |          | 3,724  |   |              | $      | 2,770 |   |
| Other                |   |          | 609    |   |              | $      | 650 |   |
| TOTAL                |   | $             | 18,708 |   |              | $      | 11,123 |   |
|                 |   |          |   |   |              |   |   |   |

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| Description                                         |   | June      30, 2008 |     |   | December      31, 2007 |   |
|-----------------------------------------------------|--------|--------------------|----------|--------|------------------------|--------|
|                                                |   |               |     |   |                   |   |
| Vessels                                             |   | $                  | 620,524  |   |                   | $      | 402,098 |   |
| Vessel      improvements and other equipment        |   |               | 67,826   |   |                   |   | 53,323 |   |
| Deferred      drydocking costs                      |   |               | 20,729   |   |                   |   | 13,990 |   |
| Vessel      construction in process                 |   |               | 101,246  |   |                   |   | 62,835 |   |
| Other      fixed assets                             |   |               | 17,473   |   |                   |   | 13,513 |   |
|                                                |   |               | 827,798  |   |                   |   | 545,759 |   |
| Less      accumulated depreciation and amortization |   |               | (131,685 | )      |                   |   | (101,677 | ) |
|                                                |   | $                  | 696,113  |   |                   | $      | 444,082 |   |
|                                                |   |               |     |   |                   |   |   |   |

| New                      | Former                  |                   |                          |   | Purchase                  |    |
|--------------------------|-------------------------|------------------------|-------------------------------|--------|---------------------------|---------|
| Vessel      Name         | Vessel      Name        | Delivery      Date     | Vessel      Type              |   | Price                     |    |
|                     |                    |                   |                          |   |  (in      thousands) |    |
| Zuni  Princess | Ypermachos              | January      29, 2008  | Bulk      carrier             |   | $                         | 26,000  |   |
| Oneida      Princess     | Gebe      Oldendorff    | February      11, 2008 | Bulk      carrier             |   |                      | 32,320  |   |
| Hopi      Princess       | African      Sanderling | February      15, 2008 | Multipurpose      tweendecker |   |                      | 18,185  |   |
| Mohave      Maiden       | Diasozousa              | February      19, 2008 | Bulk      carrier             |   |                      | 26,013  |   |
| Caribe      Maiden       | Frijsenborg             | March      11, 2008    | Multipurpose      tweendecker |   |                      | 23,230  |   |
| Ottawa      Princess     | Wedellsborg             | March      25, 2008    | Multipurpose      tweendecker |   |                      | 23,230  |   |
| Canarsie      Princess   | Athinoula               | June      17, 2008     | Bulk      carrier             |   |                      | 30,603  |   |
| Houma      Belle         | North      Star         | June      18, 2008     | Bulk      carrier             |   |                      | 34,021  |   |
|                     |                    | Total                  |                          |   | $                         | 213,602 |   |
|                     |                    |                   |                          |   |                      |    |   |

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|                            |   | June      30,                                                                                                                           |   | December      31,                                                                                                                 |
|---------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|
| Description                     |   | 2008                                                                                                                                    |   | 2007                                                                                                                              |
|                            |   |                                                                                                                                    |   |                                                                                                                              |
| Voyage      and vessel expenses |   |  $              29,100                                       |   |  $             26,981                                       |
| Payroll      and related costs  |   |                    8,971                 |   |                   9,353                 |
| Commissions                     |   |                       479 |   |                      379 |
| Total                           |   |  $              38,550                                       |   |  $             36,713                                       |
|                            |   |                                                                                                                                    |   |                                                                                                                              |

|                                                                            |   | Interest      Rate at June      30, 2008 |   |   |    | June      30, 2008 |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|---------|-------------------------|--------|-----------------------------|--------|
|                                                                            |   |                                     |   |   |    |                    |   |                        |   |
| Bank      of America - term credit facility                                     |   |                                     |   |   |  $ |                    |   | $                           | 50,446 |   |
| Bank      of America - revolving credit facility                                |   |                                     |   |   |    |                    |   |                        | 70,375 |   |
| Bank      of America - term credit facility,                                    |   |                                     |   |   |    |                    |   |                        |   |   |
| expires      December 31, 2011                                                  |   |                                     | 5.05   | %      |    |                    |   | 133,000                     |   |   |   |   |
| The      Royal Bank of Scotland credit facility                                 |   |                                     |   |   |    |                    |   |                        |   |   | 4,345 |   |
| The      Royal Bank of Scotland credit facility,                                |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| new      vessel buildings,  expires December  31,      2020 |   |                                     | 4.55   | %      |    |                    |   | 50,000                      |   |   | 35,000 |   |
| Credit      Suisse credit facility,                                             |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| expires      December 12, 2017 and  February 19, 2018                 |   | 3.77%      & 3.84%                   |   |   |    |                    | 37,750 |                        |   | 20,000 |   |
| DVB      Group Merchant Bank (Asia) Ltd credit facility,                        |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| expires      January 23, 2013                                                   |   |                                     | 5.42   | %      |    |                    |   | 70,108                      |   |   |   |   |
| AIG      Commercial Equipment Finance, Inc. credit facility,                    |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| expires      April 1, 2012                                                      |   |                                     | 5.00   | %      |    |                    |   | 35,000                      |   |   |   |   |
| Commerzbank      AG credit facility,                                            |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| expires      June 2, 2011                                                       |   |                                     | 4.18   | %      |    |                    |   | 12,500                      |   |   |   |   |
| Berenberg      Bank credit facility,                                            |   |                                     |   |   |    |                    |   |                        |   |   |   |   |
| expires      June 19, 2012                                                      |   |                                     | 4.51   | %      |    |                    |   | 13,000                      |   |   |   |   |
| Debt      balance                                                               |   |                                     |   |   |    |                    | $      | 351,358                     |   | $ | 180,166 |   |
|                                                                            |   |                                     |   |   |    |                    |   |                        |   |   |   |   |

| 2008      (July 1, 2008 through December 31, 2008) |   | $      | 41,659  |   |
|----------------------------------------------------|--------|--------|---------|--------|
| 2009                                               |   |   | 84,405  |   |
| 2010                                               |   |   | 83,026  |   |
| 2011                                               |   |   | 72,698  |   |
| 2012                                               |   |   | 29,073  |   |
| Thereafter                                         |   |   | 40,497  |   |
|                                               |   | $      | 351,358 |   |
|                                               |   |   |    |   |

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|                  |   | Loan      A                   |   | Loan      B                   |   | Loan      C                   |   | Loan      D                   |   | Loan      E                   |   | Loan      F                   |   |
|-----------------------|--------|-------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-------------------------------|--------|-------------------------------|--------|
|                  |   | ArgyleMaritimeCorp.           |   | CatonMaritimeCorp.            |   | Dorchester      MaritimeCorp. |   | Longwoods      MaritimeCorp.  |   | McHenry      MaritimeCorp.    |   | Sunswyck      MaritimeCorp    |   |
| Milestone             |   | Hull      No NYHS200720       |   | Hull      No NYHS200721       |   | Hull      No NYHS200722       |   | Hull      No NYHS200723       |   | Hull      No NYHS200724       |   | Hull      No NYHS200725       |   |
|                  |   |                          |   |                          |   |                          |   |                          |   |                          |   |                          |   |
| Contract      Signing |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   |
| Steel      Cutting    |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   |
| Keel      Laying      |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   |
| Launching             |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   |
| Delivery              |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   | $  5.0      million |   |

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|                                                                                 | Asset      Derivatives                      |   |
|--------------------------------------------------------------------------------------|---------------------------------------------|--------|
| (in      thousands)                                                                  | June      30, 2008                          |   | December      31, 2007 |   |
|                                                                                 | Balance      Sheet Location                 |   | Fair      Value |   | Balance      Sheet Location |   | Fair      Value |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |
| Derivatives      designated as hedginginstruments      under      Statement 133      |                                        |   |   |   |   |   |   |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |
| Interest      rate contracts                                                         | Other      assets and deferred      charges |   | $ | 2,049 |   | Other      assets and deferred      charges |   | $ |   |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |   |   |
| Derivatives      not designated as hedging instruments      under      Statement 133 |                                        |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |   |   |
| Interest      rate contracts                                                         | Other      assets and deferred      charges |   |   |   |   | Other      assets and deferred      charges |   |   |   |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |   |   |
| Total      assset derivatives                                                        |                                        |   | $ | 2,049 |   |   |   | $ |   |   |
|                                                                                 |                                        |   |   |   |   |   |   |   |   |   |

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|                                                                            | Liability      Derivatives  |   |
|---------------------------------------------------------------------------------|-----------------------------|--------|
| (in      thousands)                                                             | June      30, 2008          |   | December      31, 2007 |   |
|                                                                            | Balance      Sheet Location |   | Fair      Value |   | Balance      Sheet Location |   | Fair      Value |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |
| Derivatives      designated as hedging instruments under      Statement 133     |                        |   |   |   |   |   |   |   |   |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |
| Interest      rate contracts                                                    | Other      liabilities      |   | $ | 2,917 |   | Other      liabilities |   | $ | 2,897 |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |
| Derivatives      not designated as hedging instruments under      Statement 133 |                        |   |   |   |   |   |   |   |   |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |
| Interest      rate contracts                                                    | Other      liabilities      |   |   | 649 |   | Other      liabilities |   |   | 568 |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |
| Total      liability derivatives                                                |                        |   | $ | 3,566 |   |   |   | $ | 3,465 |   |
|                                                                            |                        |   |   |   |   |   |   |   |   |   |

|                                                              |   | Amount      of Gain or (Loss) Recognized in OCI on Derivatives (Effective      Portion) |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                              |   |                                                                                    |   |   |   |   |
| Derivatives      in Statement 133 Cash Flow Hedging Relationships |   | June      30,2008                                                                       |   |   | December      31,2007 |   |
|                                                              |   |                                                                                    |   |   |   |   |
| Interest      rate contracts                                      |   | $                                                                                       | (868   | ) |   | $ | (2,897 | ) |
|                                                              |   |                                                                                    |   |   |   |   |   |   |

|                                                                       |   |                                                                                |   |                                                                                                      |   | Amount      of Gain or (Loss) Recognized in Income on Derivatives (in      thousands) |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                                       |   |                                                                                |   |                                                                                                      |   | For      the Three Months Ended June 30, 2008                                         |   | For      the Six Months Ended June 30, 2008 |
| Derivatives      Not Designated as Hedging Instruments under Statement 133 |   | Location      of Gain or (Loss)  Recognized in Income on      Derivatives |   | 2008                                                                                                      |   | 2007                                                                                  |   | 2008 |   | 2007 |
|                                                                       |   |                                                                                |   |                                                                                                      |   |                                                                                  |   |   |   |   |   |   |
| Interest      rate contracts                                               |   | Interest      expense                                                               |   |  $                11 |   |  $              |   |  $              (81) |   |  $            (155) |
|                                                                       |   |                                                                                |   |                                                                                                      |   |                                                                                  |   |   |   |   |   |   |

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|        |                         |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |
|-------------|------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
| Assets      |                         |   |         |   |   |         |   |   |         |   |
|        | Interest      rate contracts |   | $            |   |   |         | $      | 2,049  |         |   | $ |   |   |
| Liabilities |                         |   |         |   |   |         |   |   |         |   |   |   |   |
|        | Interest      rate contracts |   | $            |   |   |         | $      | 3,566  |         |   | $ |   |   |

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|                                                                                          |   | Three      Months Ended June 30,                                                      |       |   | Six      Months Ended June 30, |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|------------|--------|--------------------------------|--------|
|                                                                                          |   | 2008                                                                                  |       |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
|                                                                                          |   | (In      thousands, except number of shares and earnings per share      amounts) |       |
| Numerators:                                                                                   |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |
| Net      income                                                                               |   | $                                                                                     | 52,641     |   |                           | $      | 21,687 |   |   | $ | 98,019 |   |   | $ | 36,091 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Denominators:                                                                                 |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic-weighted      average common shares outstanding                                         |   |                                                                                  | 28,778,769 |   |                           |   | 28,014,925 |   |   |   | 28,411,539 |   |   |   | 28,014,122 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average restricted stock issued to employees and directors                      |   |                                                                                  | 94,626     |   |                           |   | 50,029 |   |   |   | 64,897 |   |   |   | 34,173 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted-weighted      average common shares and potential common      shares      outstanding |   |                                                                                  | 28,873,395 |   |                           |   | 28,064,954 |   |   |   | 28,476,436 |   |   |   | 28,048,295 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income      per common share:                                                                 |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                         |   | $                                                                                     | 1.83       |   |                           | $      | 0.77 |   |   | $ | 3.45 |   |   | $ | 1.29 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                       |   | $                                                                                     | 1.82       |   |                           | $      | 0.77 |   |   | $ | 3.44 |   |   | $ | 1.29 |   |
|                                                                                          |   |                                                                                  |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |

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|                                                          |   |             |                                                                                                              |     |    |                                                                                                                                 | Office |    |                                                                          |   |
|---------------------------------------------------------------|--------|------------------|-------------------------------------------------------------------------------------------------------------------|----------|---------|--------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------------------------------------------------------------------------|--------|
| At      June 30, 2008                                         |   | Vessel      Hire |                                                                                                              | Premises |    | Total                                                                                                                                |
| 2008  (July      1, 2008 through December 31, 2008) |   |  $          |                   3,864 |     | $       |                      240    |   | $       |             4,104 |
| 2009                                                          |   |             |                   7,910 |     |    |                             |   |    |             7,910 |
| 2010                                                          |   |             |                   5,951 |     |    |                             |   |    |             5,951 |
| 2011                                                          |   |             |                   5,351 |     |    |                        |   |    |             5,351 |
| 2012                                                          |   |             |                   5,366 |     |    |                        |   |    |             5,366 |
| Thereafter                                                    |   |             |                   5,792 |     |    |                        |   |    |             5,792 |
|                                                          |   |  $          | 34,234                                                                                                            |     |  $ | 240                                                                                                                                  |   |  $ | 34,474                                                                        |
|                                                          |   |             |                                                                                                              |     |    |                                                                                                                                 |   |    |                                                                          |

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|                      |   | Three      Months Ended June 30, |    |   | Six      Months Ended June 30, |   |
|---------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
| Country                   |   | 2008                             |    |   | 2007                           |   |   | 2008 |   |   | 2007 |   |
|                      |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Brazil                    |   | $                                | 37,340  |   |                           | $      | 17,538 |   |   | $ | 66,490 |   |   | $ | 33,623 |   |
| Japan                     |   |                             | 22,554  |   |                           |   | 8,826 |   |   |   | 40,756 |   |   |   | 17,145 |   |
| United      Arab Emirates |   |                             | 15,485  |   |                           |   | 6,478 |   |   |   | 27,859 |   |   |   | 12,018 |   |
| Peru                      |   |                             | 12,579  |   |                           |   | 5,790 |   |   |   | 23,998 |   |   |   | 14,186 |   |
| Chile                     |   |                             | 11,943  |   |                           |   | 2,376 |   |   |   | 21,273 |   |   |   | 4,218 |   |
| Korea                     |   |                             | 5,545   |   |                           |   | 1,984 |   |   |   | 8,964 |   |   |   | 3,441 |   |
| China                     |   |                             | 5,294   |   |                           |   | 7,073 |   |   |   | 8,044 |   |   |   | 9,542 |   |
| Venezuela                 |   |                             | 4,248   |   |                           |   | 982 |   |   |   | 5,655 |   |   |   | 3,176 |   |
| Others                    |   |                             | 8,510   |   |                           |   | 4,364 |   |   |   | 17,114 |   |   |   | 4,922 |   |
| Total                     |   | $                                | 123,498 |   |                           | $      | 55,411 |   |   | $ | 220,153 |   |   | $ | 102,271 |   |
|                      |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |

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Item 2. Management's Discussion and Analysis of FinancialCondition and Results of Operations

| · | macroeconomic      conditions in the geographic regions where we  operate; |
|--------|----------------------------------------------------------------------------|

| · | general      economic conditions in the industries in which our customers      operate; |
|--------|-----------------------------------------------------------------------------------------|

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| · | changes      in our freight and sub-time charter rates — rates we charge for vessels we      charter out — and,      in periods when our voyage and vessel expenses increase, our ability to      raise our ratesto      pass such cost increases through to our  customers; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the      extent to which we are able to efficiently utilize our controlled fleet      and optimize its capacity; and |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | the      extent to which we can control our fixed and variable costs, including      those for port charges,fuel,      commission expense and stevedore and other cargo-related      expenses. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Anticpated      Number of vessels entering drydock during quarter |   |   | Anticipated      Number of      drydock days during      quarter |   |   | Estimated      metric tons of steel to be installed |   |
|--------------------------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                     |   |                                                              |   |   |                                                             |   |   |                                                     |   |
| Third      Quarter 2008  |   |                                                              | 4      |   |                                                             |   | 219    |                                                     |   |   | 600 |   |
| Fourth      Quarter 2008 |   |                                                              | 4      |   |                                                             |   | 231    |                                                     |   |   | 1,110 |   |

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|                               |   | Three      Months Ended |    |   | Three      Months Ended      |   |   |                     |   |   |                         |   |
|------------------------------------|--------|-------------------------|---------|--------|------------------------------|--------|--------|--------------------------|--------|--------|------------------------------|--------|
|                               |   | June      30, 2008      |    |   | June      30, 2007           |   |   | Increase      (Decrease) |   |
|                               |   | In      Thousands       |    |   | As      a % of Total Revenue |   |   | In      Thousands        |   |   | As      a % of Total Revenue |   |   | In      Thousands |   |   | Percentage |   |
|                               |   |                    |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |
| Voyage      revenue                |   | $                       | 128,696 |   |                         |   | 82.0   |                     |   | $      | 60,384                       |   |   |   | 78.8 |   |   | $ | 68,312 |   |   |   | 113.1 |   |
| Time      charter revenue          |   |                    | 25,258  |   |                         |   | 16.1   |                     |   |   | 16,122                       |   |   |   | 21.0 |   |   |   | 9,136 |   |   |   | 56.7 |   |
| Other      revenue                 |   |                    | 2,993   |   |                         |   | 1.9    |                     |   |   | 155                          |   |   |   | 0.2 |   |   |   | 2,838 |   |   |   |   |   |
| Total      revenue                 |   |                    | 156,947 |   |                         |   | 100.0  |                     |   |   | 76,661                       |   |   |   | 100.0 |   |   |   | 80,286 |   |   |   | 104.7 |   |
|                               |   |                    |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Voyage      expense                |   |                    | 44,122  |   |                         |   | 28.1   |                     |   |   | 19,534                       |   |   |   | 25.5 |   |   |   | 24,588 |   |   |   | 125.9 |   |
| Vessel      expense                |   |                    | 24,315  |   |                         |   | 15.5   |                     |   |   | 22,941                       |   |   |   | 29.9 |   |   |   | 1,374 |   |   |   | 6.0 |   |
| Depreciation      and amortization |   |                    | 16,515  |   |                         |   | 10.5   |                     |   |   | 8,423                        |   |   |   | 11.0 |   |   |   | 8,092 |   |   |   | 96.1 |   |
| General      and administrative    |   |                    | 15,296  |   |                         |   | 9.8    |                     |   |   | 7,663                        |   |   |   | 10.0 |   |   |   | 7,633 |   |   |   | 99.6 |   |
| Loss      from sale of vessel      |   |                    |    |   |                         |   |   |                     |   |   | 35                           |   |   |   |   |   |   |   | (35 | ) |   |   | (100.0 | ) |
| Total      operating expenses      |   |                    | 100,248 |   |                         |   | 63.9   |                     |   |   | 58,596                       |   |   |   | 76.4 |   |   |   | 41,652 |   |   |   | 71.1 |   |
| Income      from operations        |   |                    | 56,699  |   |                         |   | 36.1   |                     |   |   | 18,065                       |   |   |   | 23.6 |   |   |   | 38,634 |   |   |   | 213.9 |   |
| Other      (expenses) and income   |   |                    |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense              |   |                    | (3,840  | )      |                         |   | (2.5   | )                        |   |   | (2,397                       | )      |   |   | (3.1 | ) |   |   | (1,443 | ) |   |   | 60.2 |   |
| Gain      on sale and insurance    |   |                    |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| recovery      of vessel            |   |                    |    |   |                         |   |   |                     |   |   | 6,034                        |   |   |   | 7.9 |   |   |   | (6,034 | ) |   |   | (100.0 | ) |
| Other      income (expense)        |   |                    | (218    | )      |                         |   | (0.1   | )                        |   |   | (15                          | )      |   |   |   |   |   |   | (203 | ) |   |   |   |   |
| Net  income              |   | $                       | 52,641  |   |                         |   | 33.5   |                     |   | $      | 21,687                       |   |   |   | 28.4 |   |   | $ | 30,954 |   |   |   | 142.7 |   |
|                               |   |                    |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                         |   | Three      Months Ended June 30, |   |
|----------------------------------------------|--------|----------------------------------|--------|
|                                         |   | 2008                             |   |   | 2007 |   |
|                                         |   |                             |   |   |   |   |
| Number      of vessels (1)                   |   |                             | 30     |   |   |   | 22 |   |
| Freight      voyage days (2)                 |   |                             | 2,758  |   |   |   | 2,009 |   |
| Days      on hire (3)                        |   |                             | 2,825  |   |   |   | 2,043 |   |
| Revenue      tons carried (thousands) (4)    |   |                             |   |   |   |   |   |   |
| For      all cargoes                         |   |                             | 2,288  |   |   |   | 1,621 |   |
| Excluding      aggregates                    |   |                             | 1,233  |   |   |   | 808 |   |
|  Aggregates                             |   |                             | 1,055  |   |   |   | 813 |   |
| Freight      Rates (5)                       |   |                             |   |   |   |   |   |   |
| For      all cargoes                         |   | $                                | 56.25  |   |   | $ | 37.26 |   |
| Excluding      aggregates                    |   | $                                | 91.79  |   |   | $ | 66.73 |   |
| Daily      time charter equivalent rates (6) |   | $                                | 31,212 |   |   | $ | 20,538 |   |
|                                         |   |                             |   |   |   |   |   |   |

| (1) |     Weighted      average number of vessels in the fleet, not including vessels chartered      out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |     Number      of days that our vessels were earning revenue, not including vessels      chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (3) |     Number      of days that our vessels were available for hire, not including vessels      chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (4) |     Revenue      tons is a measurement on which shipments are freighted.  Cargoes      are rated as weight (based on metric tons)    or      measure (based on cubic meters); whichever produces the higher revenue      will be considered the revenue ton.                                                                                                                                                                                                                                                                                                                                                          |
| (5) |     Weighted      average freight rates measured in dollars per revenue  ton.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (6) | Time      Charter Equivalent or "TCE" rates are defined as voyage revenue less      voyage expenses during the period divided by the number of available      freight voyage days during the period.  Voyage expenses include:      fuel, port call, commissions, stevedore and other cargo related and      miscellaneous voyage expenses.  No deduction is made for vessel      or general and administrative expenses.  TCE is an industry      standard for measuring and analyzing fluctuations between financial      periods and as a method of equating TCE revenue generated from a voyage      charter to time charter revenue. |

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|                       |   | Three      Months Ended |    |   |                                |   |   |                     |   |
|----------------------------|--------|-------------------------|---------|--------|-------------------------------------|--------|--------|--------------------------|--------|
|                       |   | June      30, 2008      |    |   | June      30, 2007                  |   |   | Increase      (Decrease) |   |
|                       |   |                    |    |   |                                |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Description                |   | In      Thousands       |    |   | As      a % of Total Voyage Revenue |   |   | In      Thousands        |   |   | As      a % of Total Voyage Revenue |   |   | In      Thousands |   |   | Percentage |   |
| Steel      products        |   | $                       | 35,235  |   |                                |   | 27.4   |                     |   | $ | 20,658 |   |   |   | 34.2 |   |   | $ | 14,577 |   |   |   | 70.6 |   |
| Metal      concentrates    |   |                    | 23,224  |   |                                |   | 18.0   |                     |   |   | 7,051 |   |   |   | 11.7 |   |   |   | 16,173 |   |   |   |   |   |
| Agricultural      products |   |                    | 21,121  |   |                                |   | 16.4   |                     |   |   | 13,628 |   |   |   | 22.6 |   |   |   | 7,493 |   |   |   | 55.0 |   |
| Aggregates                 |   |                    | 15,485  |   |                                |   | 12.0   |                     |   |   | 6,479 |   |   |   | 10.7 |   |   |   | 9,006 |   |   |   | 139.0 |   |
| Other      bulk cargo      |   |                    | 13,041  |   |                                |   | 10.1   |                     |   |   | 3,463 |   |   |   | 5.7 |   |   |   | 9,578 |   |   |   |   |   |
| Project      cargo         |   |                    | 6,561   |   |                                |   | 5.1    |                     |   |   | 224 |   |   |   | 0.4 |   |   |   | 6,337 |   |   |   |   |   |
| Rolling      stock         |   |                    | 4,472   |   |                                |   | 3.5    |                     |   |   | 2,829 |   |   |   | 4.7 |   |   |   | 1,643 |   |   |   | 58.1 |   |
| Automotive      products   |   |                    | 2,163   |   |                                |   | 1.7    |                     |   |   | 1,005 |   |   |   | 1.7 |   |   |   | 1,158 |   |   |   | 115.2 |   |
| General      cargo         |   |                    | 5,723   |   |                                |   | 4.5    |                     |   |   | 1,524 |   |   |   | 2.5 |   |   |   | 4,199 |   |   |   |   |   |
| Fertilizers                |   |                    |    |   |                                |   |   |                     |   |   | 2,745 |   |   |   | 4.6 |   |   |   | (2,745 | ) |   |   | (100.0 | ) |
| Other                      |   |                    | 1,671   |   |                                |   | 1.3    |                     |   |   | 778 |   |   |   | 1.2 |   |   |   | 893 |   |   |   | 114.8 |   |
| Total      voyage revenue  |   | $                       | 128,696 |   |                                |   | 100.0  |                     |   | $ | 60,384 |   |   |   | 100.0 |   |   | $ | 68,312 |   |   |   | 113.1 |   |
|                       |   |                    |    |   |                                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                         |   | Three      months Ended June 30, |   |
|----------------------------------------------|--------|----------------------------------|--------|
|                                         |   | 2008                             |   |   | 2007 |   |
| Number      of vessels (1)                   |   |                             | 9      |   |   |   | 9 |   |
| Time      Charter days (2)                   |   |                             | 777    |   |   |   | 839 |   |
| Daily      charter hire rates (3)            |   | $                                | 32,506 |   |   | $ | 19,215 |   |
| Daily      time charter equivalent rates (4) |   | $                                | 30,563 |   |   | $ | 18,727 |   |

| (1) | Weighted      average number of vessels chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Number      of days the vessels earned charter hire.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (3) | Weighted      average charter hire rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (4) | Time      Charter Equivalent or "TCE" rates for vessels that are time chartered out,      are defined as time charter revenue during the period reduced by      commissions divided by the number of available time charter days during      the period.  Commissions for vessels that are time chartered out for      the three months ended June 30, 2008 and June 30, 2007 were $1.5 million      and $0.4 million, respectively. No deduction is made for vessel or general      and administrative expenses.  TCE is an industry standard for      measuring and analyzing fluctuations between financial periods and as      a method of equating TCE revenue generated from a voyage charter to time      charter revenue. No voyage expenses are deducted because they are not      applicable. |

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|                       |   | Three      Months Ended June 30, |   | Increase      (Decrease) |   |
|----------------------------|--------|----------------------------------|--------|--------------------------|--------|
|                       |   | 2008                             |   |                     | 2007   |   | Days |   |   | Percentage |   |
|                       |   |                             |   |                     |   |   |   |   |   |   |   |
| Freight      voyage days   |   |                             | 2,758  |                     |   |   | 2,009 |   |   | 749 |   |   |   | 37.3 |   |
| Time      charter out days |   |                             | 777    |                     |   |   | 839 |   |   | (62 | ) |   |   | (7.4 | ) |
| Total      voyage days     |   |                             | 3,535  |                     |   |   | 2,848 |   |   | 687 |   |   |   | 24.1 |   |
|                       |   |                             |   |                     |   |   |   |   |   |   |   |   |   |   |   |

|                       |   | Three      Months Ended |   | Three      Months Ended       |   |                           |   |              |   |
|----------------------------|--------|-------------------------|--------|-------------------------------|--------|--------------------------------|--------|-------------------|--------|
|                       |   | June      30, 2008      |   | June      30, 2007            |   |  Increase      (Decrease) |   |
|                       |   |                    |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | In      Thousands       |   | As      a % of Voyage Expense |   | As      a % of Revenue    |   | In      Thousands |   | As      a % of Voyage Expense |   | As      a % of Revenue |   | In      Thousands |   | As      a % of 2007 Expense |   | As      a % of Revenue |   |
|                       |   |                    |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Fuel      expense          |   | $                       | 19,560 |                          |   | 44.3                           |   |              | 12.4   |   | $ | 8,737 |   |   | 44.7 |   |   | 11.4 |   | $ | 10,823 |   |   | 123.9 |   |   | 1.0 |   |
| Commission      expense    |   |                    | 7,821  |                          |   | 17.8                           |   |              | 5.0    |   |   | 2,897 |   |   | 14.8 |   |   | 3.8 |   |   | 4,924 |   |   | 170.0 |   |   | 1.2 |   |
| Port      call expense     |   |                    | 6,714  |                          |   | 15.2                           |   |              | 4.3    |   |   | 3,840 |   |   | 19.7 |   |   | 5.0 |   |   | 2,874 |   |   | 74.8 |   |   | (0.7 | ) |
| Stevedore      and other   |   |                    |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cargo-related      expense |   |                    | 4,915  |                          |   | 11.1                           |   |              | 3.1    |   |   | 3,070 |   |   | 15.7 |   |   | 4.0 |   |   | 1,845 |   |   | 60.1 |   |   | (0.9 | ) |
| Miscellaneous      voyage  |   |                    |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expense                    |   |                    | 2,921  |                          |   | 6.6                            |   |              | 1.9    |   |   | 990 |   |   | 5.1 |   |   | 1.3 |   |   | 1,931 |   |   | 195.1 |   |   | 0.6 |   |
| Logistic                   |   |                    | 2,191  |                          |   | 5.0                            |   |              | 1.4    |   |   |   |   |   |   |   |   |   |   |   | 2,191 |   |   |   |   |   | 1.4 |   |
| Voyage      expense        |   | $                       | 44,122 |                          |   | 100.0                          |   |              | 28.1   |   | $ | 19,534 |   |   | 100.0 |   |   | 25.5 |   | $ | 24,588 |   |   | 125.9 |   |   | 2.6 |   |
|                       |   |                    |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

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|                             |   | Three      Months Ended |   |   | Three      Months Ended       |   |   |                     |   |
|----------------------------------|--------|-------------------------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|
|                             |   | June      30, 2008      |   |   | June      30, 2007            |   |   | Increase      (Decrease) |   |
|                             |   |                    |   |   |                          |   |   |                     |   |   |   |   |   |   |   |
|                             |   | In      Thousands       |   |   | As      a % of Vessel Expense |   |   | In      Thousands        |   |   | As      a % of Vessel Expense |   |   | In      Thousands |   |   | Percentage |   |
|                             |   |                    |   |   |                          |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Owned      vessel expense        |   | $                       | 21,227 |   |                          |   | 87.3   |                     |   | $ | 12,900 |   |   |   | 56.2 |   |   | $ | 8,327 |   |   |   | 64.6 |   |
| Chartered-in      vessel expense |   |                    | 1,479  |   |                          |   | 6.1    |                     |   |   | 8,425 |   |   |   | 36.7 |   |   |   | (6,946 | ) |   |   | (82.4 | ) |
| Controlled      vessel expense   |   |                    | 1,609  |   |                          |   | 6.6    |                     |   |   | 1,616 |   |   |   | 7.1 |   |   |   | (7 | ) |   |   | (0.4 | ) |
| Vessel      expense              |   | $                       | 24,315 |   |                          |   | 100.0  |                     |   | $ | 22,941 |   |   |   | 100.0 |   |   | $ | 1,374 |   |   |   | 6.0 |   |
|                             |   |                    |   |   |                          |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

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Table of Contents

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|                                |   | Six      Months Ended |    |   | Six      Months Ended        |   |   |                     |   |   |                         |   |
|-------------------------------------|--------|-----------------------|---------|--------|------------------------------|--------|--------|--------------------------|--------|--------|------------------------------|--------|
|                                |   | June      30, 2008    |    |   | June      30, 2007           |   |   | Increase      (Decrease) |   |
|                                |   | In      Thousands     |    |   | As      a % of Total Revenue |   |   | In      Thousands        |   |   | As      a % of Total Revenue |   |   | In      Thousands |   |   | Percentage |   |
|                                |   |                  |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |
| Voyage      revenue                 |   | $                     | 226,856 |   |                         |   | 78.6   |                     |   | $      | 112,323                      |   |   |   | 76.4 |   |   | $ | 114,533 |   |   |   | 102.0 |   |
| Time      charter revenue           |   |                  | 57,984  |   |                         |   | 20.1   |                     |   |   | 34,190                       |   |   |   | 23.3 |   |   |   | 23,794 |   |   |   | 69.6 |   |
| Other      revenue                  |   |                  | 3,683   |   |                         |   | 1.3    |                     |   |   | 474                          |   |   |   | 0.3 |   |   |   | 3,209 |   |   |   |   |   |
| Total      revenue                  |   |                  | 288,523 |   |                         |   | 100.0  |                     |   |   | 146,987                      |   |   |   | 100.0 |   |   |   | 141,536 |   |   |   | 96.3 |   |
|                                |   |                  |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Voyage      expense                 |   |                  | 76,540  |   |                         |   | 26.5   |                     |   |   | 38,715                       |   |   |   | 26.3 |   |   |   | 37,825 |   |   |   | 97.7 |   |
| Vessel      expense                 |   |                  | 47,749  |   |                         |   | 16.5   |                     |   |   | 40,498                       |   |   |   | 27.6 |   |   |   | 7,251 |   |   |   | 17.9 |   |
| Depreciation      and amortization  |   |                  | 30,008  |   |                         |   | 10.4   |                     |   |   | 16,837                       |   |   |   | 11.5 |   |   |   | 13,171 |   |   |   | 78.2 |   |
| General      and administrative     |   |                  | 27,063  |   |                         |   | 9.4    |                     |   |   | 14,843                       |   |   |   | 10.1 |   |   |   | 12,220 |   |   |   | 82.3 |   |
| Loss      from sale of vessel       |   |                  |    |   |                         |   |   |                     |   |   | 814                          |   |   |   | 0.6 |   |   |   | (814 | ) |   |   | (100.0 | ) |
| Total      operating expenses       |   |                  | 181,360 |   |                         |   | 62.8   |                     |   |   | 111,707                      |   |   |   | 76.1 |   |   |   | 69,653 |   |   |   | 62.4 |   |
| Income      from operations         |   |                  | 107,163 |   |                         |   | 37.2   |                     |   |   | 35,280                       |   |   |   | 23.9 |   |   |   | 71,883 |   |   |   | 203.8 |   |
| Other      (expenses) and income    |   |                  |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense               |   |                  | (7,277  | )      |                         |   | (2.5   | )                        |   |   | (5,169                       | )      |   |   | (3.5 | ) |   |   | (2,108 | ) |   |   | 40.8 |   |
| Loss      on extinguishment of debt |   |                  | (2,318  | )      |                         |   | (0.8   | )                        |   |   |                         |   |   |   |   |   |   |   | (2,318 | ) |   |   |   |   |
| Gain      on sale and insurance     |   |                  |    |   |                         |   |   |                     |   |   | 6,034                        |   |   |   | 4.1 |   |   |   | (6,034 | ) |   |   | (100.0 | ) |
| recovery      of vessel             |   |                  |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense)         |   |                  | 451     |   |                         |   | 0.2    |                     |   |   | (54                          | )      |   |   |   |   |   |   | 505 |   |   |   |   |   |
| Net  income               |   | $                     | 98,019  |   |                         |   | 34.1   |                     |   | $      | 36,091                       |   |   |   | 24.5 |   |   | $ | 61,928 |   |   |   | 171.6 |   |
|                                |   |                  |    |   |                         |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

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|                                         |   | Six      Months Ended June 30, |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | 2008                           |   |   | 2007 |   |
|                                         |   |                           |   |   |   |   |
| Number      of vessels (1)                   |   |                           | 28     |   |   |   | 22 |   |
| Freight      voyage days (2)                 |   |                           | 5,133  |   |   |   | 3,907 |   |
| Days      on hire (3)                        |   |                           | 5,301  |   |   |   | 3,955 |   |
| Revenue      tons carried (thousands) (4)    |   |                           |   |   |   |   |   |   |
| For      all cargoes                         |   |                           | 4,332  |   |   |   | 3,123 |   |
| Excluding      aggregates                    |   |                           | 2,227  |   |   |   | 1,649 |   |
|  Aggregates                             |   |                           | 2,105  |   |   |   | 1,474 |   |
| Freight      Rates (5)                       |   |                           |   |   |   |   |   |   |
| For      all cargoes                         |   | $                              | 52.37  |   |   | $ | 35.97 |   |
| Excluding      aggregates                    |   | $                              | 89.35  |   |   | $ | 60.84 |   |
| Daily      time charter equivalent rates (6) |   | $                              | 29,866 |   |   | $ | 19,213 |   |

| (1) | Weighted      average number of vessels in the fleet, not including vessels chartered      out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Number      of days that our vessels were earning revenue, not including vessels      chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (3) | Number      of days that our vessels were available for hire, not including vessels      chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (4) | Revenue      tons is a measurement on which shipments are freighted.  Cargoes      are rated as weight (based on metric tons)or      measure (based on cubic meters); whichever produces the higher revenue      will be considered the revenue ton.                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (5) | Weighted      average freight rates measured in dollars per revenue  ton.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (6) | Time      Charter Equivalent or "TCE" rates are defined as voyage revenue less      voyage expenses during the period divided by the number of available      freight voyage days during the period.  Voyage expenses include      the following expenses: fuel, port call, commissions, stevedore and other      cargo related and miscellaneous voyage expenses.  No deduction      is made for vessel or general and administrative expenses.  TCE      is an industry standard for measuring and analyzing fluctuations between      financial periods and as a method of equating TCE revenue generated from a      voyage charter to time charterrevenue. |

|                       |   | Six      Months Ended |    |   |                                |   |   |                     |   |
|----------------------------|--------|-----------------------|---------|--------|-------------------------------------|--------|--------|--------------------------|--------|
|                       |   | June      30, 2008    |    |   | June      30, 2007                  |   |   | Increase      (Decrease) |   |
|                       |   |                  |    |   |                                |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Description                |   | In      Thousands     |    |   | As      a % of Total Voyage Revenue |   |   | In      Thousands        |   |   | As      a % of Total Voyage Revenue |   |   | In      Thousands |   |   | Percentage |   |
|                       |   |                  |    |   |                                |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Steel      products        |   | $                     | 63,170  |   |                                |   | 27.8   |                     |   | $ | 36,637 |   |   |   | 32.6 |   |   | $ | 26,533 |   |   |   | 72.4 |   |
| Metal      concentrates    |   |                  | 43,598  |   |                                |   | 19.2   |                     |   |   | 16,253 |   |   |   | 14.5 |   |   |   | 27,345 |   |   |   | 168.2 |   |
| Agricultural      products |   |                  | 35,053  |   |                                |   | 15.5   |                     |   |   | 21,712 |   |   |   | 19.3 |   |   |   | 13,341 |   |   |   | 61.4 |   |
| Aggregates                 |   |                  | 27,859  |   |                                |   | 12.3   |                     |   |   | 12,018 |   |   |   | 10.7 |   |   |   | 15,841 |   |   |   | 131.8 |   |
| Other      bulk cargo      |   |                  | 22,504  |   |                                |   | 9.9    |                     |   |   | 7,653 |   |   |   | 6.8 |   |   |   | 14,851 |   |   |   | 194.1 |   |
| Project      cargo         |   |                  | 11,593  |   |                                |   | 5.1    |                     |   |   | 1,794 |   |   |   | 1.6 |   |   |   | 9,799 |   |   |   |   |   |
| Rolling      stock         |   |                  | 8,053   |   |                                |   | 3.6    |                     |   |   | 5,749 |   |   |   | 5.1 |   |   |   | 2,304 |   |   |   | 40.1 |   |
| Automotive      products   |   |                  | 4,483   |   |                                |   | 2.0    |                     |   |   | 1,973 |   |   |   | 1.8 |   |   |   | 2,510 |   |   |   | 127.2 |   |
| General      cargo         |   |                  | 7,520   |   |                                |   | 3.3    |                     |   |   | 2,382 |   |   |   | 2.1 |   |   |   | 5,138 |   |   |   |   |   |
| Fertilizers                |   |                  |    |   |                                |   |   |                     |   |   | 4,290 |   |   |   | 3.8 |   |   |   | (4,290 | ) |   |   | (100.0 | ) |
| Other                      |   |                  | 3,023   |   |                                |   | 1.3    |                     |   |   | 1,862 |   |   |   | 1.7 |   |   |   | 1,161 |   |   |   | 62.4 |   |
| Total      voyage revenue  |   | $                     | 226,856 |   |                                |   | 100.0  |                     |   | $ | 112,323 |   |   |   | 100.0 |   |   | $ | 114,533 |   |   |   | 102.0 |   |

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|                                         |   | Six      months ended June 30, |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | 2008                           |   |   | 2007 |   |
|                                         |   |                           |   |   |   |   |
| Average      number of vessels (1)           |   |                           | 10     |   |   |   | 10 |   |
| Time      Charter days (2)                   |   |                           | 1,807  |   |   |   | 1,833 |   |
| Daily      charter hire rates (3)            |   | $                              | 32,088 |   |   | $ | 18,653 |   |
| Daily      time charter equivalent rates (4) |   | $                              | 30,437 |   |   | $ | 17,858 |   |

| (1) | Weighted      average number of vessels chartered out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Number      of days vessels earned charter hire.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (3) | Weighted      average charter hire rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (4) | Time      Charter Equivalent or "TCE" rates for vessels that are time chartered out,      are defined as time charter revenue during the period reduced by      commissions divided by the number of available time charter days during      the period.  Commissions for vessels that are time chartered out for      the six months ended June 30, 2008 and June 30, 2007 were $3.0 million and      $1.5 million, respectively. No deduction is made for vessel or general and      administrative expenses.  TCE is an industry standard for measuring      and analyzing fluctuations between financial periods and as a method      of equating TCE revenue generated from a voyage charter to time charter      revenue. No voyage expenses are deducted because they are not      applicable. |

|                       |   | Six      Months Ended June 30, |   |   | Increase      (Decrease) |   |
|----------------------------|--------|--------------------------------|--------|--------|--------------------------|--------|
|                       |   | 2008                           |   |   | 2007                     |   |   | Days |   |   | Percentage |   |
|                       |   |                           |   |   |                     |   |   |   |   |   |   |   |
| Freight      voyage days   |   |                           | 5,133  |   |                     |   | 3,907 |   |   |   | 1,226 |   |   |   | 31.4 |   |
| Time      charter out days |   |                           | 1,807  |   |                     |   | 1,833 |   |   |   | (26 | ) |   |   | (1.4 | ) |
| Total      voyage days     |   |                           | 6,940  |   |                     |   | 5,740 |   |   |   | 1,200 |   |   |   | 20.9 |   |

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|                       |   | Six      Months Ended |   | Six      Months Ended         |   |                           |   |              |   |
|----------------------------|--------|-----------------------|--------|-------------------------------|--------|--------------------------------|--------|-------------------|--------|
|                       |   | June      30, 2008    |   | June      30, 2007            |   |  Increase      (Decrease) |   |
|                       |   |                  |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | In      Thousands     |   | As      a % of Voyage Expense |   | As      a % of Revenue    |   | In      Thousands |   | As      a % of Voyage Expense |   | As      a % of Revenue |   | In      Thousands |   | As      a % of 2007 Expense |   | As      a % of Revenue |   |
|                       |   |                  |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Fuel      expense          |   | $                     | 34,363 |                          |   | 44.8                           |   |              | 11.9   |   | $ | 16,934 |   |   | 43.7 |   |   | 11.4 |   | $ | 17,429 |   |   | 102.9 |   |   | 0.5 |   |
| Commission      expense    |   |                  | 14,817 |                          |   | 19.4                           |   |              | 5.1    |   |   | 6,018 |   |   | 15.6 |   |   | 4.1 |   |   | 8,799 |   |   | 146.2 |   |   | 1.0 |   |
| Port      call expense     |   |                  | 12,027 |                          |   | 15.7                           |   |              | 4.2    |   |   | 7,599 |   |   | 19.6 |   |   | 5.2 |   |   | 4,428 |   |   | 58.3 |   |   | (1.0 | ) |
| Stevedore      and other   |   |                  |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cargo-related      expense |   |                  | 8,539  |                          |   | 11.2                           |   |              | 3.0    |   |   | 5,101 |   |   | 13.2 |   |   | 3.5 |   |   | 3,438 |   |   | 67.4 |   |   | (0.5 | ) |
| Miscellaneous      voyage  |   |                  |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expense                    |   |                  | 4,103  |                          |   | 5.4                            |   |              | 1.4    |   |   | 3,063 |   |   | 7.9 |   |   | 2.1 |   |   | 1,040 |   |   | 34.0 |   |   | (0.7 | ) |
| Logistic                   |   |                  | 2,691  |                          |   | 3.5                            |   |              | 0.9    |   |   |   |   |   |   |   |   |   |   |   | 2,691 |   |   |   |   |   | 0.9 |   |
| Voyage      expense        |   | $                     | 76,540 |                          |   | 100.0                          |   |              | 26.5   |   | $ | 38,715 |   |   | 100.0 |   |   | 26.3 |   | $ | 37,825 |   |   | 97.7 |   |   | 0.2 |   |
|                       |   |                  |   |                          |   |                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                             |   | Six      Months Ended |   |   | Six      Months Ended         |   |   |                     |   |
|----------------------------------|--------|-----------------------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|
|                             |   | June      30, 2008    |   |   | June      30, 2007            |   |   | Increase      (Decrease) |   |
|                             |   |                  |   |   |                          |   |   |                     |   |   |   |   |   |   |   |
|                             |   | In      Thousands     |   |   | As      a % of Vessel Expense |   |   | In      Thousands        |   |   | As      a % of Vessel Expense |   |   | In      Thousands |   |   | Percentage |   |
|                             |   |                  |   |   |                          |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Owned      vessel expense        |   | $                     | 38,040 |   |                          |   | 79.7   |                     |   | $ | 26,263 |   |   |   | 64.9 |   |   | $ | 11,777 |   |   |   | 44.8 |   |
| Chartered-in      vessel expense |   |                  | 6,607  |   |                          |   | 13.8   |                     |   |   | 11,436 |   |   |   | 28.1 |   |   |   | (4,829 | ) |   |   | (42.2 | ) |
| Controlled      vessel expense   |   |                  | 3,102  |   |                          |   | 6.5    |                     |   |   | 2,675 |   |   |   | 6.7 |   |   |   | 427 |   |   |   | 16.0 |   |
| Space      charter expense       |   |                  |   |   |                          |   |   |                     |   |   | 124 |   |   |   | 0.3 |   |   |   | (124 | ) |   |   | (100.0 | ) |
| Vessel      expense              |   | $                     | 47,749 |   |                          |   | 100.0  |                     |   | $ | 40,498 |   |   |   | 100.0 |   |   | $ | 7,251 |   |   |   | 17.9 |   |

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|                                           |   | Total  |    |   | Less      than 1 year |   |    | 1-3      years |   |   | 3-5      years |   |   | More      than 5 years |   |
|------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|---------|----------------|--------|--------|----------------|--------|--------|------------------------|--------|
|                                           |   |   |    |   |                  |   |    |           |   |   |           |   |   |                   |   |
| Debt      Obligations (1)                      |   | $      | 351,358 |   |                  | $      | 83,736  |           |   | $      | 161,954        |   |   | $                      | 74,538 |   |   | $ | 31,130 |   |
| Estimated      variable interest payments (2 ) |   |   | 44,491  |   |                  |   | 14,977  |           |   |   | 18,666         |   |   |                   | 6,754  |   |   |   | 4,094 |   |
| Operating      Lease obligations (3)           |   |   | 33,730  |   |                  |   | 7,753   |           |   |   | 11,860         |   |   |                   | 10,746 |   |   |   | 3,371 |   |
| Other      Purchase obligations (4) (5) (6)    |   |   | 194,100 |   |                  |   | 135,400 |           |   |   | 58,700         |   |   |                   |   |   |   |   |   |   |
| Total      contractual cash obligations        |   | $      | 623,679 |   |                  | $      | 241,866 |           |   | $      | 251,180        |   |   | $                      | 92,038 |   |   | $ | 38,595 |   |

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|   | (1) | As      of June 30, 2008, we had $351.4 million of indebtedness outstanding under      loans to our  subsidiaries that we guarantee, $37.8 million      under the $40.0 million credit facility with Credit Suisse, $70.1 million      under the $75.0 million credit facility with DVB Group Merchant Bank      (Asia) Ltd., $35.0 million under the $35.0 million credit facility with      AIG Commercial Equipment Finance, $133.0 million under the $142.5 term      loan with Bank of America, $12.5 million under the $12.5 million credit      facility with Commerzbank AG, $13.0 million under the $13.0 million credit      facility with Berenberg Bank and $50.0 million under the $150.0 million      credit facility with The Royal Bank of Scotland for the new vessel      building.  The above schedule does not reflect future advances      of $100.0 million under the $150.0 million credit facility with The Royal      Bank of Scotland for the new vessel building  program. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts      for all periods represent our estimated future interest payments on debt      facilities outstanding at June 30, 2008 based on an estimated annual      interest rate of 5% which approximates interest rates at June 30,      2008. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Operating      lease obligations include obligations under two seven-year bareboat      charters for the Seminole Princess and      the Laguna Belle      and our office leases. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | On      June 5, 2008, we entered into a memorandum of agreement to purchase      the Desert      Explorer (to be renamed Fox Maiden) for $35.3      million.  We paid a deposit of $3.5 million on June 5, 2008 and      the balance of $31.8 million is to be paid upon delivery during the third      quarter of 2008.  On June 23, 2008, we entered into a memorandum      of agreement to purchase the Ken Blossom (to be      renamed Tupi      Maiden) for $44.0 million.  We paid a deposit of $4.4      million on June 24, 2008 and the balance of $39.6 million is to be paid      upon delivery within the next thirtydays. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | We      had outstanding purchase obligations at June 30, 2008 to build and      purchase six new vessels as follows (in  thousands): |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| Owning      Subsidiary         |   | Hull      Number |   | Total  |    |   | Less      than 1 year |   |   | 1-3      years |   |
|--------------------------------|--------|------------------|--------|--------|---------|--------|-----------------------|--------|--------|----------------|--------|
|                           |   |             |   |   |    |   |                  |   |   |           |   |
| Argyle      Maritime Corp.     |   | NYHS200720       |   | $      | 14,400  |   |                  | $      | 14,400 |           |   | $ |   |   |
| Caton      Maritime Corp.      |   | NYHS200721       |   |   | 21,400  |   |                  |   | 14,000 |           |   |   | 7,400 |   |
| Dorchester      Maritime Corp. |   | NYHS200722       |   |   | 21,400  |   |                  |   | 14,000 |           |   |   | 7,400 |   |
| Longwoods      Maritime Corp.  |   | NYHS200723       |   |   | 21,400  |   |                  |   | 7,000  |           |   |   | 14,400 |   |
| McHenry      Maritime Corp.    |   | NYHS200724       |   |   | 21,400  |   |                  |   | 7,000  |           |   |   | 14,400 |   |
| Sunswyck      Maritime Corp.   |   | NYHS200725       |   |   | 21,400  |   |                  |   | 7,000  |           |   |   | 14,400 |   |
|                           |   | Total            |   | $      | 121,400 |   |                  | $      | 63,400 |           |   | $ | 58,000 |   |
|                           |   |             |   |   |    |   |                  |   |   |           |   |   |   |   |

|   | (6) | In      connection with the new building program, we entered into a contract for      the supervision and inspection of vessels under      construction.  As of June 30, 2008, commitments under the      contract were $1.3 million, with $0.6 million due within one year and $0.7      million due between one and threeyears. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In      June, we received $ 95.6 million in net proceeds from the issuance of      Class A common shares in our secondary public  offering; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      March, we amended and restated our existing Bank of America      Credit Facility.  In connection with the amendment, we increased      the term loan facility to $142.5 million and the revolving credit facility      to $125.0 million.  We borrowed $142.5 million under the term loan      credit facility to repay the existing credit facility and pay closing      costs and fees. After the repayment of principal, interest and fees, the      remaining amount of $18.9 million was used for general corporate      purposes.  At June 30, 2008, we had no borrowings outstanding      under the revolving creditfacility; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      borrowed an additional $15.0 million during this quarter under our $150.0      million credit facility with The Royal Bank of Scotland to fund the      construction payments due on the building of six new multipurpose vessels      with retractable tweendecks; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      February, we borrowed the remaining $20.0 million available under the      Credit Suisse credit facility. The proceeds of this loan together with      available working capital were used to purchase the vessel, Oneida      Princess; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      borrowed $35.0 million from AIG Commercial Equipment Finance, Inc. to      replenish operating funds used to purchase the Mohave Maiden, Zuni Princess and Hopi Princess; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      January, we borrowed $75.0 million, under a syndicated credited      facility with DVB Group Merchant Bank (Asia) Ltd. The funds were used to      replenish funds used to exercise a purchase option for seven tweendeck      vessels chartered-in under a sale-leaseback arrangement, to fund      additional vessel acquisitions and for general corporate      purposes; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      June, we borrowed $12.5 million from Commerzbank AG. The proceeds of this      loan together with working capital were used to purchase the vessel, Caribe Maiden;      and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Also      in June, we borrowed $13.0 million from Berenberg Bank. The proceeds of      this loan together with working capital were used to purchase      the vessel, Ottawa      Princess. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | Six      Months Ended June 30, |   |
|------------------------------------------------------|--------|--------------------------------|--------|
|                                                 |   | 2008                           |   |   | 2007 |   |
|                                                 |   | (in      millions)             |   |
|                                                 |   |                           |   |   |   |   |
| Vessels      purchased                               |   | $                              | 213.6  |   |   | $ | 17.00 |   |
| Take      over costs                                 |   |                           | 6.4    |   |   |   | 0.4 |   |
| Construction      in progress                        |   |                           | 38.4   |   |   |   | 43.4 |   |
| Deferred      drydocking costs                       |   |                           | 8.8    |   |   |   | 11.0 |   |
| Vessels      improvements and vessel equipment       |   |                           | 10.9   |   |   |   | 7.7 |   |
| Other      fixed asset additions                     |   |                           | 3.9    |   |   |   | 1.9 |   |
| Sub      total                                       |   |                           | 282.0  |   |   |   | 81.4 |   |
| Less      Vessel deposits paid in prior years        |   |                           | (14.8  | ) |   |   | (1.7 | ) |
| Total      Vessel acquisitions / capital improvement |   | $                              | 267.2  |   |   | $ | 79.7 |   |

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| ·   | We      acquired eight vessels that were delivered during the first six months of      2008 for a total purchase price of $213.6 million, including $14.8 million      in deposits paid in 2007.  In connection with these vessels and      others that we recently acquired, we incurred takeover costs of $6.4      million.  We used cash from borrowings and operations to fund      the acquisitions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      connection with our construction program to build six newly designed      multipurpose vessels with retractable tweendecks we made payments to the      ship building yard and incurred capitalized costs totaling $38.4 million.      These ships were designed by a TBS team drawn from all phases of our      operations specifically to optimize our efficient cargo transportation in      our trade lanes, support the requirements of our loyal customer base and      enhance the growth of our business.  Two of the vessels are      scheduled for delivery in 2009, and four vessels are scheduled for      delivery in 2010. The project is being funded from our $150.0 million      credit facility with The Royal Bank of Scotland and operating cash      flow; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During      the six months ended June 30, 2008 we drydocked ten vessels for a total      cost of $8.8 million, including four vessels that were drydocked for the      first time for a cost of $2.0 million;and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      made deposits totaling $7.9 million for the Fox Maiden (formerly      the Desert      Explorer), and the Tupi Maiden (formerly      the Ken Blossom)      which are scheduled to be delivered within the next thirty days. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      made debt repayments totaling $96.0 million, consisting of $10.6 million      in scheduled debt principal payments and $85.4 million in pay downs of the      Bank of America revolving creditfacility; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      received proceeds on debt of $71.0 million, consisting of $5.0 million      added to the Bank of America term credit facility, $30.0 million from The      Royal Bank of Scotland credit facility funding the new vessel building      program and $36.0 million of additional draw downs against the revolving      credit facility with Bank ofAmerica; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      paid $ $3.9 million in deferred financing costs related to The Royal Bank      of Scotland credit facility funding the new vessel building program;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Paid      2.0 million towards obligations under capital  leases. |
|--------------------|------------------------------------------------------------------|

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| ·   | We      received  $61.8 million consisting of proceeds on the sale of      the Maya      Princess ($7.3 million),      the sale-leaseback of the Seminole Princess and      Laguna Belle      ($45.0 million ), and on the casualty and sale of the Huron Maiden ($9.7      million); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      vessel acquisition and capital improvements totaled $79.7 million, which      consisted of vessel construction in progress ($43.4 million excluding      deferred financing costs incurred), a vessel acquisition ($17.0 million      less deposit of $1.7 million made in 2006 for the vessel,  Nanticoke      Belle), capital improvements and drydockings ($19.1 million)      and the purchase of other assets of $1.9  million;  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      made a deposit of $2.9 million on the vessel Yakima, which was      renamed the Yakima      Princes; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | We      made an additional loan to GMT Shipping Line Ltd of $0.2 million;      and |
|--------------------|------------------------------------------------------------------------------------|

| ·   | We      received a return of investment of $0.2 million because the initial public      offering of Dangote Sugar ptl was  oversubscribed. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

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Item3. Quantitativeand Qualitative Disclosure About MarketRisk

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Item4. Controlsand Procedures

Item1. LegalProceedings

Item 1A. RiskFactors

Item 2. Unregistered Sales of Equity Securities and Use ofProceeds

Item 3. DefaultsUpon Senior Securities

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Item 4. Submissionof Matters to a Vote of Security Holders

| MATTER                                                                                                                                                                                                                                         |   | FOR    |       |   | AGAINST |   |    | ABSTAIN |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|---------|--------|---------|---------|--------|
| Re-election      of  James W. Bayley                                                                                                                                                                                                 |   |   | 19,660,026 |   |    |   | 326,009 |    |   |   | 29,430 |   |
| Re-election      of  John P. Cahill                                                                                                                                                                                                  |   |   | 19,892,548 |   |    |   | 93,989  |    |   |   | 28,929 |   |
| Re-election      of Randee E. Day                                                                                                                                                                                                              |   |   | 19,890,433 |   |    |   | 96,197  |    |   |   | 28,835 |   |
| Re-election      of  William P. Harrington                                                                                                                                                                                           |   |   | 19,892,938 |   |    |   | 93,802  |    |   |   | 28,726 |   |
| Re-election      of Gregg L. McNelis                                                                                                                                                                                                           |   |   | 19,729,701 |   |    |   | 256,334 |    |   |   | 29,430 |   |
| Re-election      of Joseph E. Royce                                                                                                                                                                                                            |   |   | 19,742,766 |   |    |   | 243,269 |    |   |   | 29,430 |   |
| Re-election      of Peter S. Shaerf                                                                                                                                                                                                            |   |   | 19,890,196 |   |    |   | 96,404  |    |   |   | 28,866 |   |
| Re-election      of  Alexander Smigelski                                                                                                                                                                                             |   |   | 19,890,946 |   |    |   | 95,304  |    |   |   | 29,215 |   |
| Reappointment      of PricewaterhouseCoopers LLP as the Company’s independent      registered public accounting firm until the 2009 Annual General      Meeting.                                                                         |   |   | 19,911,976 |   |    |   | 70,992  |    |   |   | 32,498 |   |
| Amendment      of the Company's Bye-Laws to authorize the Company to hold treasury      stock.                                                                                                                                                 |   |   | 19,915,302 |   |    |   | 70,819  |    |   |   | 29,344 |   |
| Amendment      of the Company's Bye-Laws relating to use of the Company seal;      electronic      delivery of communications and remote participation in meetings, and      changes      in the Company's required officers and their titles. |   |   | 19,935,984 |   |    |   | 52,363  |    |   |   | 27,118 |   |

Item 5.  Other Information

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Item6. Exhibits

| 3.1*  | Memorandum      of AssociationMemorandum      of Increase of ShareCapital |
|------------|---------------------------------------------------------------------------|

| 3.2*  | Bye-laws |
|------------|----------|

| 31.1* | Certification      of the Chief Executive Officer pursuant to rules 13a-15(a) and 15d-15(a)      under the Securities Exchange Act of 1934, as adopted pursuant to Section      302 of the Sarbanes-Oxley Act of2002 |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2* | Certification      of the Chief Financial Officer pursuant to rules 13a-15(a) and 15d-15(a)      under the Securities Exchange Act of 1934, as adopted pursuant to Section      302 of the Sarbanes-Oxley Act of2002 |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.3* | Certification      of the Chief Accounting Officer pursuant to rules 13a-15(a) and 15d-15(a)      under the Securities Exchange Act of 1934, as adopted pursuant to Section      302 of the Sarbanes-Oxley Act of2002 |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.0** | Certification      of Chief Executive Officer, Chief Financial Officer and Chief Accounting      Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes-Oxley Act of2002. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.1* | Loan      Agreement dated June 19, 2008 by and among Grainger Maritime Corp. and      Joh. Berenberg, Gossler & Co.KG |
|-------|---------------------------------------------------------------------------------------------------------------------------|

| 99.2* | Loan      Agreement dated May 28, 2008 by and among. Dyker Maritime Corp. and      Commerzbank AG |   |
|-------|---------------------------------------------------------------------------------------------------|--------|

|   | ________ |
|--------|----------|

| *   | Filed      herewith. |
|---------------|----------------------|

| ** | Pursuant      to SEC Release No. 33-8212, this certification will be treated as      "accompanying" this Quarterly Report on Form 10-Q and not "filed" as part      of such report for purposes of Section 18 of the Securities Exchange Act      of 1934, as amended, or otherwise subject the liability of Section 18 of      the Securities Exchange Act of 1934, as amended, and this certification      will not be deemed to be incorporated by reference into any filing under      the Securities Act of 1933, as amended, or the Securities Exchange Act of      1934, as amended, except to the extent that the registrant specifically      incorporates it by reference. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Signatures

|   |      | TBS      INTERNATIONAL LIMITED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      | (Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | By:       |        /s/ Joseph E.      Royce                                                                                   |
|   |      |        Joseph E. Royce       President and Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |  By: |        /s/ Ferdinand V.      Lepere                                                                                              |
|   |      |        Ferdinand V. Lepere       Senior Vice President, Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |  By: |        /s/ Frank      Pittella                                                                                                        |
|   |      |        Frank Pittella       Controller, Chief AccountingOfficer                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |